Why companies create corporate venture funds?

This question became a subject of the article published by our student, Sergey Galaktionov, and Elena Rogova, in Innovations

The purpose of the paper is to test empirically the relationship between the different features of corporate venture funds and the innovation performance of companies that create corporate venture funds. Though corporate venture funds are considered as important components of corporate innovation strategies, and each fourth largest innovative company is investing via them, the scholars have different vision on their role in innovation-based development of parent companies. Usually case studies or surveys are used to describe their importance. This paper contains an attempt to close the gap on the empirical base and to reveal factors that may have the highest important for the effective organization of innovation activities with the usage of corporate venture investments. The research is performed by regression analysis. The sample consists of 117 largest corporate venture funds, and the data is collected for the period of 2011-2015. The results obtained may have an interesting application for the corporate venture investments organization in Russia, where this mode of innovation-based investments becomes more popular in the recent years.
Innovations is a "core" journal on HSE list. It is included in RSCI.